Ready to Comply?
Strapline: Golden Copy
A common thread emerges throughout a few different issues covered in this month’s Inside Reference Data—the Solvency II rules, using data management to mitigate risk, and the concept of big data—and that is whether securities industry participants are ready, or will be ready, to either comply with regulation or implement initiatives that are being discussed.
In Nicholas Hamilton’s feature on Solvency II, HSBC Securities Services’ Chris Johnson observes that firms still need to figure out “joined-up data consistency,” meaning they cannot cling to competitive secrecy, at least when it comes to providing information in a consistent format. Firms could each try to solve, singularly and without collaboration, regulatory reporting challenges under Solvency II, but they will inevitably produce different and incompatible answers. In the same story, SAS UK consultant Simon Kirby notes that many of these firms are operating in silos, which can also cause incompatible data sets.
Our report on an October 27 webcast on managing risk included a poll of attendees about whether they think their systems are adequate to meet regulatory requirements. Twenty-four percent said they will not be able to meet requirements with current systems. While 64% said they have systems ready and adopted, that number really ought to be much higher—perfection may not be possible, but it seems like the type of criteria that should be above 95%. At least, this state of affairs may help gain support for necessary data management projects, as Nick Helton, global reference data manager at Northern Trust, observed during the webcast.
In this month’s ‘Interview With’, Daryan Dehghanpisheh of Intel details ways the chip-maker is trying to help financial industry firms address big data issues, particularly those caused by new forms of relevant data such as Twitter feeds and Google searches, if one counts those within the range of information defined as “big data.” On this concept, it isn’t a matter of firms being unaware or unprepared, but Dehghanpisheh says firms are trying to build systems with the scalability to keep up.
Inevitably, when the industry has seen new regulatory mandates such as these, or operational developments, polls and surveys at industry conferences, or remarks on panels and in trade media like ours, reveal a sizable portion of firms and practitioners who believe they are unprepared or unaware of how to prepare to meet the new needs. Does the occurrence of this phenomenon depend on what the task or requirement is, or is it inherent to the industry no matter what the initiative?
Finally, don’t forget to visit Inside Reference Data’s LinkedIn discussion group. We will periodically ask for your reactions to these opinions there. If you have an interesting or compelling viewpoint—especially if you disagree—you may have it distributed more widely in future columns and reporting.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Industry associations say ECB cloud guidelines clash with EU’s Dora
Responses from industry participants on the European Central Bank’s guidelines are expected in the coming weeks.
Regulators recommend Figi over Cusip, Isin for reporting in FDTA proposal
Another contentious battle in the world of identifiers pits the Figi against Cusip and the Isin, with regulators including the Fed, the SEC, and the CFTC so far backing the Figi.
US Supreme Court clips SEC’s wings with recent rulings
The Supreme Court made a host of decisions at the start of July that spell trouble for regulators—including the SEC.
This Week: FCA, Plato/Turquoise, Franklin Templeton, and more
A summary of the latest financial technology news.
Insurers deny cyber premiums are rising
Contrary to banks’ complaints, underwriters and brokers claim current market for policies is soft.
Size matters: US equity market players wrangle over new tick size regime
The industry expects the SEC to finalize the Reg NMS shake-up as soon as late summer. While there is broad agreement about the need for change, the extent of the reduction in access fees and tick sizes will have a big impact on markets.
CME: CFTC OKs clearing move to Google Cloud
The CFTC has given the Chicago-based exchange approval to run its clearing and settlement infrastructure on the Google Cloud Platform, while the exchange and vendor have extended their partnership to last until at least 2037.
Cutting through the hype surrounding the FDTA rulemaking process
A bill requiring US regulators and institutions to adopt a machine-readable data framework for reporting purposes applies to entity identifiers, but not security identifiers, in a crucial difference, writes Scott Preiss, SVP and global head of Cusip Global Services.